The Green Deal is doomed to fail unless the Government takes “swift and decisive” action to boost customer demand for green home improvements.

That’s the warning from the Federation of Master Builders (FMB), which is calling on the government to provide more financial incentives.

A recent survey of survey of their members found 70% thought a reduced VAT rate would be a ‘successful’ or ‘highly successful way of encouraging customers to make their homes more energy efficient. Another 65% thought a free energy efficiency assessment would be an effective way to increase demand.

Brian Berry, Chief Executive of the FMB said: “It’s time for the Government to accept the Green Deal has not been a success.

“The FMB has worked hard to promote the Green Deal to small construction firms but until our members see a clear demand for Green Deal work and a more straightforward route to the Green Deal market they will not engage with the scheme.”

He added: “The latest Government statistics show that just over 70,000 Green Deal assessments have been undertaken to date but only 12 Green Deal Plans are ‘live’, demonstrating that a growing number of home owners want to improve the energy efficiency of their properties but they aren’t interested in paying for it using Green Deal finance.”